Qatar Airways to buy up to 10% of American Airlines
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Qatar Airways to buy up to 10% of American Airlines
American Airlines on Thursday said it recently received an unsolicited offer from Qatar Airways about its intention to acquire at least a 10 percent stake in its company, a move that not many people could have predicted.
The notice advised that Qatar intends to purchase at least $808 million in the U.S.-based airline following a conversation between the two companies' CEOs, which was initiated by Qatar Airways' CEO, Akbar Al Baker, American said in a statement.
American said Thursday that it will respond to the notice "in due course" with the appropriate filings required under the Hart-Scott-Rodino (HSR) Act. Qatar Airways has submitted a filing under the HSR Act, with respect to its potential investment in American Airlines common stock, the companies have confirmed.
Shares of American Airlines jumped nearly 5 percent on this news. [...]
This news might come as a surprise because American's CEO, Doug Parker, has been extremely vocal in blasting Gulf carriers, like Qatar, arguing they receive subsidies and have potentially hurt U.S. carriers as a result.
A deal like this, though, couldn't be stopped by Parker, so long as Qatar doesn't exceed the 24.9 percent ceiling.
The notice advised that Qatar intends to purchase at least $808 million in the U.S.-based airline following a conversation between the two companies' CEOs, which was initiated by Qatar Airways' CEO, Akbar Al Baker, American said in a statement.
American said Thursday that it will respond to the notice "in due course" with the appropriate filings required under the Hart-Scott-Rodino (HSR) Act. Qatar Airways has submitted a filing under the HSR Act, with respect to its potential investment in American Airlines common stock, the companies have confirmed.
Shares of American Airlines jumped nearly 5 percent on this news. [...]
This news might come as a surprise because American's CEO, Doug Parker, has been extremely vocal in blasting Gulf carriers, like Qatar, arguing they receive subsidies and have potentially hurt U.S. carriers as a result.
A deal like this, though, couldn't be stopped by Parker, so long as Qatar doesn't exceed the 24.9 percent ceiling.
Qatar Airways to buy at least 10% of American Airlines
Headline is incorrect: should say at least 10%, not up to 10%. The story says QR intends to buy at least a 10 percent stake in AA.
Last edited by OldLurker; 22nd Jun 2017 at 20:47. Reason: typo
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From Reuters:
American Airlines' chief executive said on Thursday he is not "particularly excited" about Qatar Airways' interest in buying up to 10 percent of the U.S. carrier's shares, in a letter to employees following the state-owned Gulf airline's overture.
